Kirti Nagar, Delhi
Accounting for Kirti Nagar's timber and furniture trade
Selling a sheet of plywood is simple. Taking an advance, buying wood, paying carpenters, delivering a wardrobe and collecting the balance three months later is not. Kirti Nagar's trade includes both, and many firms do both.
One custom order, from advance to balance
Made-to-order work spreads a single sale across months. Each stage leaves its own record. This is our general analysis, so adjust it to how you work.
| Stage | Record | Question to raise |
|---|---|---|
| Advance taken | A receipt linked to an order number | Does the advance need any GST entry, and when is it income? |
| Materials issued | Timber, ply, laminate and hardware against that order | How do we value part-finished work at year end? |
| Carpenters paid | Bills or wage records, by order if you can | Are they staff, contractors or job workers? Each is treated differently |
| Delivery and fitting | Signed delivery note and any fitting charge | Is this a sale of goods, a works-type service, or both? |
| Balance collected | Receipt against the order, and any final discount | How do we treat a balance the customer disputes or never pays? |
Timber dealers: tax collected on sale
Section 394(1) of the Income-tax Act, 2025 lists sale of timber among the receipts on which a seller collects tax, and the Act as enacted shows 2%. There are conditions and exceptions, including for certain buyers who give a declaration. Rates in this section were revised by the Finance Act, 2026, and we have not confirmed the current timber rate at source.
So ask two things: does this apply to what you sell, and is it being collected, deposited and reported correctly? Plywood, laminate and veneer are different goods, so do not assume the same answer.
Showroom and yard stock
- Count display pieces as stock, even if they are never moved
- Note timber in different sizes, by cubic measure and value
- Keep offcuts and waste in a simple record, along with any waste sold
- Mark damaged or dated pieces, and value them honestly
- Separate goods held for customers who have already paid
When you send goods out for work
Ply, laminate or timber sent to an outside workshop to be made into furniture can fall under the job work rules. If a registered business sends inputs out without paying tax, section 143 of the CGST Act applies: the principal must keep proper accounts, and inputs must be back or supplied from there within one year. Otherwise they are treated as supplied on the day they were sent.
Ask whether this fits your arrangement, and how to treat payments to carpenters for TDS and labour purposes.
Interior contracts
Showrooms sometimes take on a whole interior job, with design, materials and fitting. That can change the GST picture, the point at which income arises, and any tax a business customer deducts from your bill. Raise it before quoting, and put the scope in writing.
See accounting for manufacturers for work in progress, and accounting for traders for party credit.
About the area, and about us
Delhi's Department of Industries lists Kirti Nagar as an industrial area in its West zone. The trade press reports a timber market dealers' association with around 500 members, and a city guide describes buyers there having wood or ply made to order. The Delhi government's 2022-23 budget named Kirti Nagar among markets to redevelop, and we have not confirmed the present status of that plan.
AccountOrbit takes enquiries by phone from anywhere in Delhi, including Kirti Nagar, but has no office there. If you take on interior contracts, have a recent quotation or order to hand on the first call, as it shows how your jobs are structured.
Sources checked, November 2026
- Income-tax Act, 2025, Gazette copy (opens in a new tab), section 394 as enacted (read at source; amended by the Finance Act, 2026)
- CGST Act as amended to 1 January 2022 (opens in a new tab), section 143 (read at source; check for later changes)
- Department of Industries, West Zone (opens in a new tab) (official)
- Ply Reporter (opens in a new tab), LBB (opens in a new tab), report on the redevelopment plan (opens in a new tab) (secondary)
Timber or furniture in Kirti Nagar?
Tell us whether you trade, make to order or both, your rough monthly bill count, and your software.
